Shulou(Shulou.com)11/24 Report--

CTOnews.com October 30 news, U.S. chipmaker Broadcom and cloud service provider VMware issued a joint statement said that Broadcom's $69 billion (currently about 505.77 billion yuan) acquisition of VMware "will still be completed soon," but in any case before the merger agreement expires.

It is reported that the transaction agreement between the two companies will expire on November 26. At present, it has been approved by regulatory authorities such as Australia, Brazil, Canada, EU, UK, Israel, Japan, South Africa and South Korea. It has also obtained foreign investment control permits in all necessary jurisdictions, but it seems that it has not yet been approved by Chinese regulatory authorities.

"There are no legal obstacles to termination under U.S. merger regulations," the companies said. However, if the acquisition is terminated due to failure to obtain regulatory approval in a timely manner, Broadcom will have to pay a termination fee of $1.5 billion (CTOnews.com Note: currently approximately RMB 10.995 billion).

If Broadcom's merger with VMware is ultimately terminated due to regulatory failure, it would mark the second time in five years that Broadcom has failed because of geopolitics.

In 2018, the United States blocked Broadcom's $142 billion acquisition of Qualcomm on the grounds that the acquisition of the US semiconductor giant by a company headquartered in Singapore would raise national security concerns, and Broadcom subsequently moved its headquarters directly to the United States.

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